Why Hexcel's Composite Materials Edge Makes It a Stronger Buy Than FTAI Aviation.

The commercial aviation sector offers diverse investment paths. Two complementary stocks are FTAI Aviation and Hexcel. FTAI focuses on the aftermarket. Hexcel concentrates on the Original Equipment Manufacturer (OEM) market. For long-term investors, Hexcel appears to be the stronger aerospace recovery investment for 2026.

Hexcel and the OEM Growth Engine

Hexcel is a key supplier to major manufacturers. The company provides Hexcel advanced composite materials. These materials are vital for modern aircraft construction. Composites offer strength and significant weight savings. This helps airlines meet crucial emissions goals.

The industry is entering a new growth phase. This phase centers on the aircraft production ramp-up. Manufacturers like Airbus and Boeing have large backlogs. Airbus is targeting around 900 deliveries in 2026. Boeing plans to increase its 737 deliveries to 47 per month. Industry forecasts predict 1,800 total aircraft deliveries in 2026. This significant increase drives Hexcel's OEM business.

Hexcel benefits from the increasing use of composites. The legacy Boeing 737 used only 5% composites. The newer Boeing 737 MAX composites account for 15% of its structure. Widebody aircraft like the Boeing 787 Dreamliner use 50% composites by weight. The global aerospace composites market is projected to grow. It is expected to reach $53.4 billion by 2030. This represents a compound annual growth rate (CAGR) of 12.0%. Hexcel is a top producer of carbon fiber and honeycomb. This positions Hexcel perfectly for this secular trend.

FTAI Aviation's Aftermarket and AI Diversification

FTAI Aviation's business model is different. It thrives in the Aerospace OEM vs aftermarket dynamic. FTAI focuses on leasing and maintenance. Its primary revenue comes from CFM56 engine maintenance. This engine powers many older Airbus A320s and Boeing 737s. These aircraft are staying in service longer than expected.

Aftermarket demand is currently very strong. This is largely due to new aircraft delivery delays. Supply chain constraints and new-gen engine issues contribute. For example, issues with other engines keep older jets flying. FTAI recently signed a materials agreement with CFM International. This strengthens its core Aviation engine maintenance repair overhaul business. FTAI is a key rival and partner to GE Aerospace.

The Hidden AI Stock Angle

FTAI has an exciting new venture. This unit is called FTAI Power. It converts retired CFM56 engine cores. These cores become power turbines for data centers. This addresses the massive electricity demand for AI. The company plans to deliver 100 cores annually. This provides a new, high-growth revenue stream. It also extends the life of the CFM56 engine. This move diversifies the FTAI Aviation stock analysis profile.

Strategic Portfolio Complementarity

Investors should consider both companies. They offer a hedge against industry cycles. Hexcel capitalizes on Original Equipment Manufacturer growth. FTAI benefits when OEM production slows down. Delays force airlines to use and service older planes more often. This dual exposure minimizes risk. Hexcel, however, offers exposure to the strongest long-term trend. That trend is the increasing composite content in new aircraft. This makes Hexcel the better buy for the next phase of recovery.

• 1,800 commercial aircraft deliveries are forecast for 2026.
• The global aerospace composites market is projected to grow at a 12.0% CAGR through 2030.
• FTAI Power will convert CFM56 cores into 25-megawatt data center power turbines.
• The Boeing 737 MAX uses three times the composite materials of its predecessor.

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